Colombia to probe cement makers on alleged price fixing

08 February 2006

The Colombian government Wednesday will start investigating three top cement suppliers suspected of collusion to fix prices.

"The Colombian government saw an unusual and strange reduction of, and increase in prices, of cement. We will open a formal investigation tomorrow and this could end up in sanctions," Trade and Industry Minister Jorge Humberto Botero told reporters.

Senator Hugo Serrano recently said in Congress that the three main cement makers in Colombia, local group Cementos Argos SA , Mexico’s Cemex SA and Swiss company Holcim Ltd simultaneously cut cement prices by 40% last year to harm small local producers. Subsequently, Argos bought a smaller producer, taking advantage of the latter’s difficult financial situation.